For Beard Papas franchises, does the franchise agreement supersede any other document executed in connection with the franchise regarding the waiver of claims under state franchise law?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
No statement, questionnaire or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of: (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to the 2025 Beard Papas Franchise Disclosure Document, any statement, questionnaire, or acknowledgement signed by a franchisee at the start of their franchise relationship cannot waive claims under state franchise law, including claims of fraud. This specifically includes disclaiming reliance on statements made by Beard Papas or their representatives. The FDD states that this provision overrides any other conflicting terms in any document related to the franchise agreement.
This means that even if a franchisee signs a document that appears to waive their rights under state franchise law, that waiver will not be enforceable. This protection extends to claims like fraud in the inducement, where a franchisee claims they were misled into signing the agreement. The provision aims to protect franchisees from unknowingly giving up their legal rights.
Several state-specific amendments reinforce this protection. For example, in California, the Franchise Investment Law voids any provision requiring a franchisee to waive specific provisions of the law. Similarly, in North Dakota, any provision requiring a franchisee to waive their right to a jury trial is considered unfair. These amendments highlight the importance of franchisees understanding their rights under state law and ensuring that no document they sign inadvertently waives those rights.
Prospective Beard Papas franchisees should carefully review all documents related to the franchise agreement and consult with an attorney to fully understand their rights and obligations under both the franchise agreement and applicable state laws. This is particularly important in states with specific franchise laws that provide additional protections to franchisees.